A logo of the Blackberry maker's Research in Motion is seen on a building at the RIM Technology Park in Waterloo April 18, 2012.
Credit: Reuters/Mark Blinch
Showing posts with label earnings. Show all posts
Asian shares ease on corporate earnings worry
1 of 5. A man clicks his nails as he looks at an electronic board displaying share prices outside a brokerage in Tokyo September 20, 2012.
Credit: Reuters/Yuriko NakaoTOKYO | Sun Oct 14, 2012 10:54pm EDT
TOKYO (Reuters) - Asian shares fell on Monday on growth concerns ahead of the third-quarter corporate earnings season, lifting the safe-haven dollar which in turn undermined commodities.
As risk sensitive assets retreated, the dollar index .DXY measured against a basket of six major currencies gained 0.4 percent.
A stronger dollar and worries that a slowing global economy may further dent fuel demand pushed U.S. crude futures down more than $1 to $90.82 a barrel. Brent fell 0.6 percent to $113.99.
The MSCI index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.3 percent.
Tokyo's Nikkei average .N225 was down 0.1 percent. .T
U.S. stocks wrapped up their worst week in four months, led lower on Friday by financial shares. More financial institutions will report earnings in coming days, including Citigroup (C.N), Goldman Sachs (GS.N) and Bank of America (BAC.N), amid concerns about their shrinking profit margins.
"People are just cautious, quite reluctant. It is not only equities, it is property and a whole range of asset classes, people are happy to have the money in the bank rather than put it to work," said Burrell & Co director Richard Herring.
"We will probably need a good earnings reporting season out of the U.S. or a change in the environment here - a more certain outlook," Herring said.
A decline in Chinese consumer and producer prices in September left scope for policy easing to underpin growth.
Data over the weekend from China, the world's second-largest economy after the United States, offered some positive news, suggesting government moves to underpin growth are working and additional policy action may not be needed.
China's broad M2 money supply rose more than expected in September while its exports grew at roughly twice the rate expected in September and imports recovered.
"The better than expected upswing in Chinese exports follows similar outcomes for Taiwan and Korea and may be consistent with a bottoming in global manufacturing PMIs in suggesting a possible stabilization or improvement in global growth," said Shane Oliver, head of investment strategy at AMP Capital.
Commodity currencies failed to cling to an early lift, with the Australian dollar falling 0.6 percent to $1.0204, close to the near three-month low of $1.0149 plumbed a week ago.
US POSES RISK
The encouraging Chinese data could not completely dispel concerns about the global slowdown, with the euro zone's prolonged debt crisis dragging on.
Investors should brace for three or four months of jittery markets due to uncertainty over support for Spain and the looming "fiscal cliff" threatening the U.S. economy, BlackRock Chief Executive Laurence Fink told Reuters on Saturday. Fink warned that the U.S. stock market could lose 5 to 10 percent in a correction in the final months of the year.
"Markets have yet to fully reflect concerns about the 'fiscal cliff' but the issue represents a major downside risk," Takao Hattori, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo said .
Orders related to the U.S. military industry may feel the pinch as automatic across-the-board budget cuts set to begin on January 2 if there is no deal on deficit reductions, Hattori added.
The era of rising Western spending on weapons and wars is over, providing a more challenging environment for major arms manufacturers.
Hattori also said markets have been supported by expectations and hopes, rather than conviction, over how Europe will resolve its debt crisis.
The euro slipped 0.4 percent to $1.2897 as Europe muddles through debt relief measures for Spain and Greece.
Investors expect highly-indebted Spain to request assistance, triggering the European Central Bank's program to buy bonds of struggling euro zone states that ask for aid.
They also hope Europe will not allow Greece to leave the currency union.
Greek Prime Minister Antonis Samaras has said his government expects to agree a new austerity package with its lenders and for the European Union and the International Monetary Fund to bridge their differences on how to cut the country's debt by the time EU leaders meet on October 18-19.
Euro zone officials are considering new ways to reduce Greece's huge debts because delays to reforms by Athens and continued recession have put the target of a debt to GDP ratio of 120 percent in 2020 out of reach, euro zone officials said.
Euro zone officials also said Spain could ask for financial aid from the euro zone in November.
Asian credit markets weakened, with the spread on the iTraxx Asia ex-Japan investment-grade index widening by 2 basis points.
(Additional reporting by Ian Chua in Sydney and Victoria Thieberger in Melbourne; Editing by Simon Cameron-Moore)
Warnings on fourth quarter add to U.S. earnings worries
NEW YORK | Fri Oct 12, 2012 5:03pm EDT
NEW YORK (Reuters) - Third-quarter U.S. earnings have just begun, but already U.S. companies are sounding alarm bells about the fourth quarter.
Outlooks for the fourth quarter - just two weeks old - are so far decidedly more negative than positive. Thomson Reuters data shows 11 negative outlooks so far from Standard & Poor's 500 companies and no positive outlooks.
Third-quarter guidance, meanwhile, at the comparable period showed 6 negative outlooks and no positive.
The market has seen this play out before - companies systematically lower the bar, only to exceed estimates by a fair amount, resulting in "surprises" that bolster stock prices. This hasn't happened yet in this earnings season, but investors are on the lookout for it.
"It's really an issue of whether companies are trying to set the bar lower and give themselves an easier target to beat or whether it really does reflect a substantial risk of a slowing global economy," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.
However, U.S. companies so far are having a tougher time beating analyst expectations in the third quarter, with 59 percent of companies exceeding forecasts, below the 62 percent long-term average, based on Thomson Reuters data. And year-over-year growth is expected to be negative for the first time in three years.
Revenue trends have also been weak: Just 50 percent of companies that have reported have beaten estimates on revenue, compared with the 62 percent average, he said.
Warnings continue to come in for third-quarter reports, helping to drag down earnings estimates for the period. Several of those warnings have come from Kohl's (KSS.N) and other retailers, which do not report results until early November.
"For a lot of companies, particularly the multinationals that rely on global growth, I suppose China and Europe are at the heart of their fears," Meckler said.
Europe was cited more than any other reason for negative forecasts from S&P 500 companies for the third quarter, a Thomson Reuters survey showed, but China is a growing concern.
The slowdown in China's economy is expected to have one of the biggest effects on earnings in the U.S. technology sector, which had been among the earnings leaders. Since July 1, tech has seen a 10.4 percent drop in estimates, second worst only to materials - which is also affected by overseas demand.
Among companies guiding lower for the fourth quarter was software maker Adobe Systems (ADBE.O). It cited a faster-than-expected shift to subscriptions by customers.
Aluminum company Alcoa Inc (AA.N), which did not give a fourth-quarter earnings forecast, lowered its global aluminum consumption outlook to 6 percent growth, from 7 percent previously for 2012, and cited China as the main factor.
With results in from just 34 S&P 500 companies, estimates for earnings show a decline of 2.5 percent from a year ago, down from an October 1 forecast for a 2.1 percent fall.
If the percentage of companies beating earnings expectations stays at 59 percent, it would be the weakest earnings beat rate for any quarter since the fourth quarter of 2008, said Thomson Reuters earnings analyst Greg Harrison.
Estimates for the fourth quarter show S&P 500 earnings growth of 9.6 percent, down slightly from an Oct 1. estimate for growth of 9.9 percent, Thomson Reuters data showed.
Analysts said stocks could be in for more losses if the trend continues. The S&P 500 .SPX is down 0.2 percent since Wednesday, the day after Alcoa reported, and is off 3.1 percent since its September 14 intraday high for the year.
But Mike Jackson, founder of Denver-based investment firm T3 Equity Labs, believes the pessimism that has seeped into the market in recent weeks is overstated.
"Analysts overreact more negatively and lag positively," he said.
He sees S&P 500 industrials and telecommunications as sectors most likely to surprise to the upside on third-quarter earnings, along with energy, which has seen a big slide in earnings estimates.
(Reporting By Caroline Valetkevitch; Editing by Tim Dobbyn)
Wall Street edges lower before earnings
Traders work on the floor of the New York Stock Exchange at the opening of the trading session in New York October 5, 2012.
Credit: Reuters/Mike SegarNEW YORK | Tue Oct 9, 2012 9:39am EDT
NEW YORK (Reuters) - U.S. stocks edged lower after the open on Tuesday with investors having little reason to buy equities after the recent rally as they waited for the start later on Tuesday of the U.S. quarterly earnings season.
The Dow Jones industrial average .DJI was down 22.73 points, or 0.17 percent, at 13,560.92. The Standard & Poor's 500 Index .SPX was down 2.27 points, or 0.16 percent, at 1,453.61. The Nasdaq Composite Index .IXIC was down 9.84 points, or 0.32 percent, at 3,102.52.
(Reporting by Ryan Vlastelica; Editing by Kenneth Barry)
siamo intercontinental hotel
A new seven-star hotel but as you've never imagined. China is ready to dazzle with the construction of the Intercontinental Shanghai Shimao Wonderland, a huge structure of ultra-luxury which will be opened by the end of 2014 or the beginning of 2015 and has a unique feature: that of being under the sea level. The project was presented a few years ago and was born the idea of enhancing an old quarry in Tianmashan, about 30 km from Shanghai: thus, the hotel, designed by the London firm Atkins, will have the first three floors above the sea level, the rest of them will be below the level of the sea, created inside the cave. The project is not only ambitious, but spectacular: a glass structure 60 meters recreate the effect of a natural waterfall.
The InterContinental Shimao Wonderland is a more than ambitious, destined to reshuffle the cards in the tourism sector and the reception of luxury.
It is well known the passion of Asian skyscrapers that stand out in heaven: the most extravagant or the most exclusive hotels Faulty get to touch the sky, reaching more and more.
The idea of Shanghai Shimao, the company that will build the Wonderland, is more or less the same but the opposite: instead of climbing up the resort will fall down.
This is not the first example of a hotel under the earth, but is the most ambitious so far we saw old mines transformed into hotel rooms for a very special holiday, but not an entire structure down to the ground.
It is the same shape of the site to have given the idea to the designers who have studied how to make better the environment. So next to the hotel from 380 rooms over 19 floors, of which only three including the spa above the sea level, there will be a huge theme park from 428mila sqm.
The hotel will be developed by 100 meters deep down: the two lower levels there will be a restaurant, a sports complex where water sports and an aquarium depth of about 10 meters.
Perhaps the most impressive is the huge 60-meter glass structure designed to simulate the effect of a waterfall, while the cliffs on either side will be designed for bungee jumping and rock climbing.
The project is truly colossal, as the cost: at the moment stands at $ 555 million, but given the ambition, and will rise by much. At the moment we know that the opening is planned between 2014 and 2015 with a cost of about $ 320 per night: to know how we will have a little 'patience.
Women authors gaining ground on men in earnings
Author J.K Rowling poses for photos with her certificate after being presented with the Freedom of the City of London, at Mansion House, central London May 8, 2012.
Credit: Reuters/Andrew Winning
NEW YORK | Thu Aug 9, 2012 6:17pm EDT
NEW YORK (Reuters) - With yearly estimated earnings of more than $90 million, prolific writer James Patterson is by far the highest earning author in the world but women are gaining ground, according to Forbes.com.
Stephen King, author of "11/22/63" and numerous other books, came in a distant second on the Forbes.com list, earning $39 million, followed by Janet Evanovich, who wrote the Stephanie Plum suspense books and was the best paid woman with a $33 million income.
Legal thriller writer John Grisham was not far behind with $26 million, while Jeff Kinney, who penned the "Wimpy Kid" series, completed the top five, with earnings of $25 million.
Jeff Bercovici, of Forbes.com, said most of the names are the list are familiar ones, including Patterson.
"The thriller maestro, whose young-adult fantasy and sci-fi franchises also do brisk business, took in an astonishing $94 million this year."
But he added that it was a trio of women, Suzanne Collins, E.L. James and J.K. Rowling, who made a big impact.
Collins, who ranked eighth, made most of her $20 million salary thanks to the phenomenal success of her "Hunger Game" books, the first of which has been made into a film with more to follow.
"Harry Potter" author Rowling, who came in 10th with $17 million in earnings, is branching into the adult market with "The Casual Vacancy," due to be published in September.
James, the author of the amazing successful erotic "Fifty Shades of Grey" books, was estimated to be earning more than $1 million a week for during the height of their popularity. She is not on the list year but Forbes.com expects her to be in next year's ranking.
Forbes.com compiled the estimated earnings from May 2011 to May 2012 and ranking by talking to experts including: publishers, agents and authors. They also reviewed data on book sales and Nielsen BookScan sales figures.
The full list can be found here
(Reporting by Patricia Reaney; Editing by Leslie Gevirtz)
View the original article here
MIDCAP-Reckon leads on earnings metrics in Australia's IT sector
Australia's Reckon emerges as a stand-out performer on earnings metrics among 14 stocks in the country's information technology sector, Thomson Reuters data shows.
The data includes stocks tracked by at least three analysts.
The software firm has high score of 98 in StarMine's Analyst Revision Model and 91 in Earnings Quality model.
Five out of nine analysts have raised their EPS estimates for the year ending 2012 by 2.2 percent over the past month.
Its SmartHoldings score of 92 suggests potential increase in institutional ownership.
The stock is up 2.38 percent over the past month, while the broader index is up 3.56 percent, as of Wednesday's close.
CONTEXT:
Reckon reported a net profit of A$16.06 million for the year ended 2011, down 2.5 percent from a year ago.
A high score on StarMine's Earnings Quality model signals strong earnings sustainability over the next 12 months based on a company's past operating performance.
StarMine's Analyst Revision Model ranks stocks based on analysts' revision of earnings and revenue estimates and changes in their ratings and usually gives additional weight to analysts who have been more accurate in the past.
The StarMine SmartHoldings model is a global stock selection model that ranks stocks based on the expected future increase, or decrease in institutional ownership. (Reporting By Patturaja Murugaboopathy; Editing by Sunil Nair)
Sharp posts Q1 earnings loss, slashes annual forecast
TOKYO | Thu Aug 2, 2012 2:09am EDT
TOKYO Aug 2 (Reuters) - Sharp Corp, which posted its worst net loss in a century in the last financial year, reported a first-quarter loss as waning TV demand and an overcapacity at its main liquid crystal display plant continued to weigh on earnings.
In the three months to June 30, Sharp swung to an operating loss of 94.1 billion yen ($1.20 billion) from a 3.5 billion-yen profit a year earlier. That was deeper than the average 44.4 billion-yen loss estimated by five analysts surveyed by Thomson Reuters I/B/E/S.
The manufacturer of Aquos TVs also slashed its forecast to a full-year operating loss of 100 billion yen, from its earlier estimate for an operating profit of 20 billion yen. That compares with the average estimate for an operating loss of 18.2 billion yen in a poll of 16 analysts surveyed by Thomson Reuters since the company released its full year results in May.
Sharp is considering its first major layoffs that a source familiar with the matter told Reuters could be as many as 5,000 people.
The company in March also agreed to sell a 46.48 stake in its Sakai LCD plant to Taiwan's Hon Hai Precision Industries , part of the Foxconn Group, in a bid to isolate itself from the losses at the facility in western Japan.
Hon Hai, a major supplier to Apple Inc, is purchasing new shares in Sharp worth 66.9 billion yen, giving it an 11 percent stake in Japan's last major fabricator of LCD panels for TVs.
